Superior Oil Co. v. Pioneer Corp., 706 F.2d 603 (5th Cir. 1983). · Go Syfert
Superior Oil Co. v. Pioneer Corp., 706 F.2d 603 (5th Cir. 1983). Cases Citing This Book View Copy Cite
25 citation events (7 in the last 25 years) across 11 distinct courts.
Strongest positive: Hill Dermaceuticals, Inc. v. Anthem, Inc. (flmd, 2017-01-18)
Treatment trajectory · 1983 → 2026 · click a year to view as-of
1983 2004 2026
Top citers, strongest first. 18 distinct citers. How cited ↗
discussed Cited as authority (rule) Hill Dermaceuticals, Inc. v. Anthem, Inc.
M.D. Fla. · 2017 · confidence medium
In other words, “the declaratory judgment device allows a party ‘to bootstrap its way into federal court’ by bringing a federal suit that corresponds to one the opposing party might have brought.” Gulf States Paper, 811 F.2d at 1467 (quoting Superior Oil Co. v. Pioneer Corp., 706 F.2d 603, 607 (5th Cir. 1983)).
discussed Cited as authority (rule) Myers v. Countrywide Home Loans, Inc. (2×) also: Cited "see, e.g."
N.D. Tex. · 2005 · confidence medium
As we pointed out in Superior Oil, the federal statutes imposing “price ceilings do not give the gas producer a federal right to receive a particular price for its gas.” 706 F.2d at 606 (citation omitted) (emphasis in original).
discussed Cited as authority (rule) Household Bank v. JFS Group
11th Cir. · 2003 · confidence medium
This court also stated in Gulf States that the Declaratory Judgment Act permits a party, “ ‘to bootstrap its way into federal court’ by bringing a federal suit that corresponds to one the opposing party might have brought.” Id. at 1467 (emphasis added) (quoting Superior Oil Co. v. Pioneer Corp., 706 F.2d 603, 607 (5th Cir.1983)).
discussed Cited as authority (rule) Amoco Chemical Co. v. Tex Tin Corp.
S.D. Tex. · 1995 · signal: cf. · confidence medium
Cf. Superior Oil Co. v. Pioneer Corp., 706 F.2d 603, 607 (5th Cir.1983) (holding that the well-pleaded complaint rule barred the district court from exercising federal question jurisdiction over the plaintiffs breach of contract action because “the [federally imposed] price ceilings do not give the gas producer a federal right to receive a particular price for its gas” (emphasis omitted)), ce rt. denied, 464 U.S. 1041 , 104 S.Ct. 706 , 79 L.Ed.2d 171 (1984).
discussed Cited as authority (rule) William Jones v. Roadway Express, Inc.
5th Cir. · 1991 · confidence medium
This court has declared, in analyzing the statute that grants federal question jurisdiction, 28 U.S.C. § 1331 , that “ ‘[a] suit arises under the law that creates the cause of action.’ ” Lowe v. Ingalls Shipbuilding, 723 F.2d 1173, 1178 (5th Cir.1984) (quoting American Well Works Co. v. Layne & Bowler Co., 241 U.S. 257, 260 , 36 S.Ct. 585, 586 , 60 L.Ed. 987 (1916); Superior Oil Co. v. Pioneer Corp., 706 F.2d 603, 605 (5th Cir.1983), cert. denied, 464 U.S. 1041 , 104 S.Ct. 706 , 79 L.Ed.2d 171 (1984)).
discussed Cited as authority (rule) Collin County v. Homeowners Ass'n for Values Essential to NeighBorhoods (Haven)
N.D. Tex. · 1989 · confidence medium
The Act does this'by “enabling] a party to achieve federal question jurisdiction over a suit to declare that a claim arising under federal law which another asserts against him is not valid.” Id. (citing Superior Oil Co. v. Pioneer Corp., 706 F.2d 603, 607 (5th Cir.1983), cert. denied, 464 U.S. 1041 , 104 S.Ct. 706 , 79 L.Ed.2d 171 (1984)).
cited Cited as authority (rule) Wallace v. Ryan-Walsh Stevedoring Co., Inc.
E.D. Tex. · 1989 · confidence medium
Lowe v. Ingalls Shipbuilding, 723 F.2d 1173, 1178 (5th Cir. 1984); Superior Oil Co. v. Pioneer Corp., 706 F.2d 603, 605 (5th Cir.1983).
discussed Cited as authority (rule) Altheus Richardson, Gilberto Miranda v. United Steelworkers of America
5th Cir. · 1989 · confidence medium
See Powers v. South Central United Food & Commercial Workers Unions and Employers Health & Welfare Trust, 719 F.2d 760 , 763 & n. 1 (5th Cir.1983); Superior Oil Co. v. Pioneer Corp., 706 F.2d 603, 605 (5th Cir.1983), cert. denied, 464 U.S. 1041 , 104 S.Ct. 706 , 79 L.Ed.2d 171 (1984).
discussed Cited as authority (rule) Gulf States Paper Corporation v. Eloise H. Ingram
11th Cir. · 1987 · confidence medium
Superior Oil Co. v. Pioneer Corp., 706 F.2d 603, 607 (5th Cir. 1983), cert. denied, 464 U.S. 1041 , 104 S.Ct. 706 , 79 L.Ed.2d 171 (1984); see also Bell & Beckwith v. United States, IRS, 766 F.2d 910, 912-14 (6th Cir.1985) (discussing declaratory judgment suits that anticipate federal coercive actions).
discussed Cited as authority (rule) Fred Oliver, Cross-Appellants v. Trunkline Gas Company, Cross-Appellee (2×) also: Cited "see, e.g."
5th Cir. · 1986 · confidence medium
See, e.g., Superior Oil Co. v. Pioneer Corp., 706 F.2d 603, 605-06 (5th Cir.1983), cert. denied, 464 U.S. 1041 , 104 S.Ct. 706 , 79 L.Ed.2d 171 (1984); Cox v. International Union of Operating Engineers, 672 F.2d 421 (5th Cir.1982). 1 As we pointed out in Superior Oil, the federal statutes imposing “price ceilings do not give the gas producer a federal right to receive a particular price for its gas.” 706 F.2d at 606 (citation omitted) (emphasis in original).
discussed Cited as authority (rule) Bell & Beckwith v. United States of America, Internal Revenue Service, Donna D. Cannon
6th Cir. · 1985 · confidence medium
See, e.g., City of Saginaw v. Service Employees International Union, Local 446-M, 720 F.2d 459, 461 (6th Cir.1983); Superior Oil Co. v. Pioneer Corp., 706 F.2d 603, 607 (5th Cir. 1983), cert. denied, — U.S.-, 104 S.Ct. 706 , 79 L.Ed.2d 171 (1984); Illinois v. Archer Daniels Midland Co., 704 F.2d 935 , 940 (7th Cir.1983); Nuclear Engineering Co. v. Scott, 660 F.2d 241, 253 (7th Cir.1981), ce rt. denied, 455 U.S. 993 , 102 S.Ct. 1622 , 71 L.Ed.2d 855 (1982).
discussed Cited as authority (rule) McGehee v. Nix
M.D. La. · 1984 · confidence medium
Section 1331 requires that the suit be one “arising under” the Constitution or laws of the United States, and for this purpose “[a] suit arises under the law that creates the cause of action.” American Well Works Company v. Layne & Bowler Company, 241 U.S. 257, 260 , 36 S.Ct. 585, 586 , 60 L.Ed. 987 (1916); Superior Oil Co. v. Pioneer Corp., 706 F.2d 603, 605 (5th Cir.1983).
discussed Cited as authority (rule) Edward L. Lowe v. Ingalls Shipbuilding, a Division of Litton Systems, Inc.
5th Cir. · 1984 · confidence medium
Section 1331 requires that the suit be one “arising under” the Constitution or laws of the United States, and for this purpose “[a] suit arises under the law that creates the cause of action.” American Well Works Company v. Layne & Bowler Company, 241 U.S. 257, 260 , 36 S.Ct. 585, 586 , 60 L.Ed. 987 (1916); Superior Oil Co. v. Pioneer Corp., 706 F.2d 603, 605 (5th Cir.1983).
discussed Cited as authority (rule) Northwest Central Pipeline Corp. v. Mesa Petroleum Co.
D. Del. · 1983 · confidence medium
Phillips Petroleum Co. v. Texaco, Inc., 415 U.S. 125, 128 , 94 S.Ct. 1002, 1004 , 39 L.Ed.2d 209 (1974); Pan American Petroleum Corp. v. Superior Court, 366 U.S. 656, 663 , 81 S.Ct. 1303 /1307, 6 L.Ed.2d 584 (1961); Superior Oil Co. v. Pioneer Corp., 706 F.2d 603, 606 (5th Cir.1983); Pennzoil Co. v. Federal Energy Regulatory Commission, 645 F.2d 360, 384 (5th Cir.1981), cert. denied, 454 U.S. 1142 , 102 S.Ct. 1000 , 71 L.Ed.2d 293 (1982).
discussed Cited "see" Coffee v. Kijakazi
S.D. Tex. · 2024 · signal: see · confidence high
See Taylor, 706 F.2d at 603 (considering MRI and EEG results, neurophysiological studies, and treating physician remarks); Garza v. Asirue, Civil No. M-09-188, 20138 WL 24382421 , at *15-16 (6.D.
cited Cited "see" Louisiana United Business Ass'n Cas. Ins. v. J & J Maintenance, Inc.
W.D. La. · 2015 · signal: see · confidence high
See Superior Oil Co. v. Pioneer Corp., 706 F.2d 603, 605 (5th Cir.1983).
discussed Cited "see, e.g." Donald J. Willy, and George A. Young v. The Coastal Corp., Coastal States Management Co., Inc., Defendants (2×)
5th Cir. · 1988 · signal: see also · confidence medium
See also Superior Oil Co. v. Pioneer Corp., 706 F.2d 603, 605 (5th Cir.1983).
discussed Cited "see, e.g." Union National Bank of Laredo, Cross-Appellant v. Will M. Nelson, Cross-Appellee
5th Cir. · 1984 · signal: see, e.g. · confidence low
See, e.g., Superior Oil Co. v. Pioneer Corp., 706 F.2d 603 (5th Cir.1983) (holding that although the NGPA authorizes certain price ceilings for natural gas, it is the gas sales contract, not federal law, that creates the right to receive any price at all).
Retrieving the full opinion text from the archive…
SUPERIOR OIL CO., Plaintiff-Appellant,
v.
PIONEER CORPORATION, Defendant-Appellee
82-1464.
Court of Appeals for the Fifth Circuit.
Jun 6, 1983.
706 F.2d 603
Leo J. Hoffman, Kenneth S. Beat, Dallas, Tex., Pat F. Timmons, Houston, Tex., for plaintiff-appellant., Locke, Purnell, Boren, Laney & Neely, John L. Estes, Paul R. Spellman, Dallas, Tex., for defendant-appellee.
Clark, Johnson, Higginbotham.
Cited by 19 opinions  |  Published
PATRICK E. HIGGINBOTHAM, Circuit Judge:

In this appeal we are asked to decide whether the exercise of an option to extend the term of a gas sales agreement is a “rollover contract” within the meaning of § 2(12) of the Natural Gas Policy Act, § 15 U.S.C. § 3301(12). Because we conclude that the district court was without subject-matter jurisdiction, we must decline the invitation. We vacate the judgment below and dismiss for want of jurisdiction.

On November 1, 1954, Superior Oil Co. and Pioneer Natural Gas Co., the predecessor of Pioneer Corp., contracted for the sale of natural gas. Pioneer agreed to buy from Superior its natural gas available at the outlet of a gas processing plant in the West Seminole Field, Gaines County, Texas. The duration of the agreement was as follows:

This Agreement shall be effective as of November 1, 1954, and shall continue in effect for a term of twenty-five (25) years from and after such date, provided that the primary term may be extended at the option of Buyer for an additional period equivalent to the period gas is used for injection purposes in the West Seminole Field, or the period which is necessary to enable Buyer to receive the quantity of gas not made available to it because of such injection operations, whichever is the shorter.

Because the gas was not “dedicated” to interstate commerce, the sale was not then subject to federal regulation. In 1978 Congress adopted the Natural Gas Policy Act, 15 U.S.C. §§ 3301-3432, which regulated intrastate as well as interstate sales of natural gas. On October 17, 1979, after the passage of the Act, but before the expiration of the twenty-five-year term, Pioneer[*605] notified Superior that it was exercising its option to extend the term of the agreement.

On August 28, 1980, Superior filed this suit to recover the price of gas sold to Pioneer under the agreement as extended by the exercise of the option. Superior alleged that Pioneer had refused to pay for the gas delivered since November 1, 1979. It alleged that the extension was an “existing contract” within the meaning of § 2(13) of the NGPA, 15 U.S.C. § 3301(13), and that the ceiling price was the lower of the price under the extended agreement and the maximum lawful price for “new” natural gas. See 15 U.S.C. § 3315(b). Alternatively, and only if its first contention were rejected, Superior alleged that the extension was a “rollover contract” as defined by § 2(12) of the NGPA, 15 U.S.C. § 3301(12), and that the ceiling price was the maximum price under the original agreement plus an inflation adjustment factor. See 15 U.S.C. § 3316(b)(1). Superior’s complaint stated a single claim “for breach of contract” with jurisdiction predicated on 28 U.S.C. § 1331, the general federal-question jurisdiction statute. In its prayer for relief, Superior sought damages and injunctive and declaratory relief, including a declaration that the agreement as extended was an “existing contract” within the meaning of the NGPA.

Both parties moved for partial summary judgment, with Pioneer conceding that it had exercised the option but seeking a determination that the option so exercised was a “rollover contract.” The district court granted Pioneer’s motion. 532 F.Supp. 731 (N.D.Tex.1982). It then entered a final judgment on the basis of a fact stipulation between the parties. Superior has appealed, asking us to hold that the extension of the agreement by the exercise of the option is an “existing contract” rather than a “rollover contract.”

At the outset we are confronted with the question of subject-matter jurisdiction. Although neither party has raised the issue either here or below, it is our duty to do so. Because both Superior and Pioneer are Texas corporations for purposes of diversity jurisdiction, any jurisdiction must be under 28 U.S.C. § 1331.

There have been innumerable interpretations of § 1331’s requirement that a case “arise[] under the Constitution, laws, or treaties of the United States.” It is an old puzzlement that has drawn the attention of the notable jurists and scholars. The general consensus among courts and commentators today seems to be that federal law .must ordinarily provide a right that the plaintiff is asserting, and perhaps the plaintiff’s claim. Chief Justice Marshall’s formula, whether the federal question “forms an original ingredient” of the cause, Osborn v. Bank of the United States, 9 Wheat (22 U.S.) 738, 824, 6 L.Ed. 204 (1824), has been treated as a constitutional minimum. See Textile Workers Union v. Lincoln Mills, 353 U.S. 448, 471, 77 S.Ct. 912, 928, 1 L.Ed.2d 972 (1957) (Frankfurter, J., dissenting). Justice Holmes’ proposition that “a suit arises under the law that creates the action,” American Well Works Co. v. Layne & Bowler Co., 241 U.S. 257, 260, 36 S.Ct. 585, 586, 60 L.Ed. 987 (1916), more closely approximates the current reading of the statute. See C. Wright, The Law of Federal Courts 93-94 (4th ed. 1983); P. Bator, P. Mishkin, D. Shapiro & H. Wechsler, Hart and Wechsler’s The Federal Courts and the Federal System 883 (2d ed. 1973). Perhaps most influential is Justice Cardozo’s axiom in Gully v. First National Bank, 299 U.S. 109, 112, 57 S.Ct. 96, 97, 81 L.Ed. 70 (1936), that “a right or immunity created by the Constitution or laws of the United States must be an element, and an essential one, of the plaintiff’s cause of action.” See 13 C. Wright, A. Miller & E. Cooper, Federal Practice and Procedure § 3562 (1975).

The practical difference between the Holmes and Cardozo formulations is not great: one who is asserting a federal right will almost invariably be asserting a federal claim. Both Holmes and Cardozo recognized that the mere presence of a federal issue, specifically the anticipation of a federal defense, would not permit invocation of federal-question, jurisdiction. American Well Works Co. v. Layne & Bowler Co., 241 U.S. at 259, 36 S.Ct. at 586; Gully v. First [*606] National Bank, 299 U.S. at 113, 57 S.Ct. at 98.

Our recent cases are consistent with this received learning. In Cox v. International Union of Operating Engineers, 672 F.2d 421 (5th Cir.1982), we dismissed a defamation suit against a labor union, stating:

For original federal jurisdiction to obtain, the complaint must raise ‘a substantial claim founded “directly” upon federal law.’ ... It does not suffice that the answer raises a federal question.... Neither is it enough that the dispute is in some way connected with a federal matter. The nature of the cause of action asserted determines jurisdiction....

Id. at 422-23 (citations omitted). Similarly, in Maxwell v. First National Bank of Mon-roeville, 638 F.2d 32, 34 (5th Cir.1981), we held that an action brought by a shareholder against a national bank should not have been removed to federal court when the complaint “disclose[d] a state law claim.” We added:

We have held that for a case to ‘arise under’ federal law, a right or immunity created by that law must be an essential element of the plaintiff’s claim. The federal right or immunity that forms the basis of the claim must be such that it will be supported if the federal law is given one construction or effect and defeated if it is given another.... In order to determine whether the claim arises under the Constitution or laws of the United States, we must look to the plaintiff’s complaint unaided by anticipated defenses and with due regard to the real nature of the claim....

Id. at 35 (citations omitted).

We think these paths lead to only one destination: the district court should not have entertained Superior’s lawsuit. Like the claim whose dismissal we upheld in Epps v. Bexar-Medina-Atacosa Counties Water Improvement Dist. No. 1, 665 F.2d 594 (5th Cir.1982), Superior’s lawsuit, when “[stripped to its essentials, ... seeks enforcement of state-created contract rights.” Id. at 595. Superior asserts a state-created right to be paid for gas it has delivered, not a federal right. Unquestionably, federal law affects the price that Superior may charge for the gas; however, the NGPA price ceilings do not give the gas producer a federal right to receive a particular price for its gas. See Phillips Petroleum v. Texaco, Inc., 415 U.S. 125, 128-129, 94 S.Ct. 1002, 1004, 39 L.Ed.2d 209 (1974).

Superior’s allegations that the extension is an “existing contract” rather than a “rollover” do not fortify its jurisdictional cause. Superior is anticipating a defense, namely that the NGPA does not permit charges over the maximum price under the original agreement as adjusted for inflation. 15 U.S.C. § 3316(b)(1). Consistent with the notion that the lawsuit must proceed on a federal right, an anticipated defense may not be the basis for federal-question jurisdiction. Epps v. Bexar-Medina-Atacosa Counties Water Improvement Dist. No. 1, 665 F.2d at 595; Maxwell v. First National Bank of Monroeville, 638 F.2d at 35.

The Supreme Court’s decision in Phillips Petroleum v. Texaco, Inc., 415 U.S. 125, 94 S.Ct. 1002, 39 L.Ed.2d 209, is instructive. Texaco filed a suit claiming compensation for the helium constituent of FPC-regulated natural gas it had sold to Phillips. Texaco relied upon a federal appeals court decision holding that by virtue of the 1960 Helium Act Amendments the regulated price for natural gas did not include commingled helium. The Supreme Court held that the appeals court decision did not create a federal claim for the recovery of the reasonable value of the constituent helium, but only precluded a defense based on payment for the natural gas at FPC-regulated rates. Id. at 128, 94 S.Ct. at 1004. Having so held, the Court concluded that “Texaco’s suit for the reasonable value of the helium is, in effect, an action in quantum meruit, whose source is state law and not federal law,” and that jurisdiction was unavailable under 28 U.S.C. § 1331. Id. at 129, 94 S.Ct. at 1004. “To the extent that the Natural Gas Act and the 1960 Helium Act Amendments may bear on this action for the recovery of the reasonable value of constitu[*607] ent helium in natural gas,” the Court added, “it is clear that their effect is no more than to overcome a potential defense to the action.” Id.

Similarly, Superior’s action here is in effect for breach of contract. The asserted role of the NGPA in this case corresponds to that of the Helium Act in Phillips Petroleum: it deprives the other party of a defense. Just as the Natural Gas Act and the Helium Act established no right to recover for constitutent helium, so the NGPA establishes no right to recover for intrastate natural gas. State law propels both lawsuits. [1]

Undoubtedly, the dispute between Superior and Pioneer pivots on an issue of federal law. But that was equally true in many of the other cases we have discussed. “[T]he federal issue must appear on the face of the complaint... ” Epps v. Bexar-Medina-Atacosa Counties Water Improvement Dist. No. 1, 665 F.2d at 595. See also Gully v. First National Bank, 299 U.S. at 113, 57 S.Ct. at 98. The issue must be “an essential element of the plaintiff’s claim.” Maxwell v. First National Bank of Monroeville, 638 F.2d at 35. See also Gully v. First National Bank, 299 U.S. at 112, 57 S.Ct. at 97. The federal issue here, although dominating the controversy between the parties, simply does not constitute any part of Superior’s claim.

Nor do we believe that Superior’s request in its prayer for relief for a declaration that the agreement is an “existing contract” enhances its prospects for federal jurisdiction. An action for declaratory relief may be used to obtain a judgment that another party does not have a federal right. C. Wright, The Law of Federal Courts 101; 10A C. Wright, A. Miller & M. Kane, Federal Practice and Procedure § 2767 (2d ed. 1983). In this sense, the declaratory judgment remedy, 28 U.S.C. § 2201, expands federal jurisdiction. It enables a party to bring a federal action corresponding to the one that the opposing party might have brought. C. Wright, The Law of Federal Courts 101; 10A C. Wright, A. Miller & M. Kane, Federal Practice and Procedure § 2767.

Our survey of Superior’s pleadings, however, discloses no federal right of Pioneer’s. Superior does not even allege that Pioneer is claiming that the agreement is a “rollover contract.” Assuming such an allegation were present, Pioneer would still have no federal right on which it could sue, given Superior’s allegation that it failed to pay for the gas delivered. Although the declaratory judgment remedy permits a party to bootstrap its way into federal court by alleging the imminence of another party’s federal action against it, Superior simply has not done this. That Superior has included a request for a declaratory judgment in its prayer for relief does not alter the fact that its complaint states only a state-law claim for breach of contract.

We realize that the parties and the district court have devoted a considerable amount of time to this case. We are loathe to vacate a- carefully considered judgment with the deft explanation of “sorry, wrong court.” Could we honestly read the question of subject-matter jurisdiction to be close, we might take hold of Professor Wright’s sage advice that where “there is a debatable issue about federal question jurisdiction, pragmatic considerations must be taken into account.” C. Wright, The Law of Federal Courts 96. But the question of[*608] federal-question jurisdiction here is not close. The district court lacked subject-matter jurisdiction over Superior’s claim; we must vacate the judgment, and dismiss the claim.

VACATED and DISMISSED.

1

. We note that Clark v. Gulf Oil Corp., 570 F.2d 1138 (3d Cir.1977), cert. denied, 435 U.S. 970, 98 S.Ct. 1611, 56 L.Ed.2d 62 (1978), in which the Third Circuit concluded that federal-question jurisdiction was available over putative class actions brought by natural gas consumers for underdeliveries of gas, is distinguishable. The complaints there averred an “action to recover damages and secure equitable relief for injuries ... sustained as a direct result of violations by defendants of section 7 of the Natural Gas Act ...” Id. at 1143. Although the court ultimately reasoned that there was no private right of action under § 7, 15 U.S.C. § 717f, it noted that the question was not “insubstantial.” Id. It therefore proceeded from the jurisdictional point to the merits. Id. at 1144. Here by contrast there is no colorable federal claim, or even a federal claim at all. In its complaint Superior alleges that its suit is “for breach of contract,” and requests attorneys’ fees under Texas law.